1. Report on Finance and Operations
Rick Niswander, Ph.D., CPA
Chair, Audit & Finance Committee
Scott Spiegel, CPA, CGMA, CITP
Chief Financial Officer

2. Discussion Topics 2018 recap: 2019 update:
Strategic initiatives and integrated report
Audited combined results of Association
AICPA pension plan
2019 update:
Association budget
Revenue trend monitoring
Approve AICPA member dues rates

3. Strategic Initiatives Efforts to prepare the profession for the future
Promote Competency Globally
Evolve Auditing in the Future
Open U.S. Market for CGMA
Transform our Organization
Future-proof Management and Public Accounting
Audit standards
Non-financial statement assurance
Dynamic Audit Solution
PCR and RIVIO
Channel partnerships
B2B & B2C
Local solutions - UK, China, S. Asia
Finance Leadership Program
Unbundled CGMA
CGMA brand recognition
Modern systems & processes
Scale KL hub
NextGen value prop & MVP
Updated exams
Future of Finance
CPA evolution
Apprenticeships
Integrated tax & planning services

4. Association Integrated Report
2nd year of preparing Integrated Report for the Association
Integrated Reporting combines financial reporting with other elements to help stakeholders better understand how value is created

5. 2018 Audited Combined Financial Highlights Association of International Certified Professional Accountants & Related Organizations
Statement of Financial Position
$43.4 million in cash and cash equivalents
$116.4 million in investments
$50 million line of credit
$35 million net assets without donor restrictions
Statement of Activities
$338 million total revenue (before investment losses)
Negative investment performance but recovered in Q1 2019

6. AICPA Pension Plan Update
Plans remain liabilities of respective organizations, are frozen and benefits no longer accrue to participants
$500,000 in net pension gain in 2018
Mitigate volatility via asset allocation strategies and continue to fund at least at minimum levels required
AICPA plan 93% funded; evaluating plan annuitization options

7. Association — 2019 Budget ($ in thousands)
2018 Actual
Variance Fav / (Unfav)
Promoting Competency Globally
$ 74,940
$ 69,399
$5,541
Exams
42,886
41,041
1,845
Cost of Sales/Marketing/Commissions
(42,970)
(48,977)
6,007
Net Contribution
74,856
61,463
13,393
Membership Dues
177,721
175,205
2,516
Other Revenue
30,453
28,867
1,586
Net Operating Revenue
283,030
265,535
17,495
Total Operating Expenses
282,030
266,039
(15,991)
Net Excess (Deficit) of Operating Rev. Over (Under) Expense
$ 1,000
$ (504)
$ 1,504

8. 2019 Revenue Trend Monitoring
Responding to membership demographic shifts
Product revenue is growing; product mix shifting to virtual and on demand learning

9. Council Resolution
BE IT RESOLVED, That the proposed AICPA dues rates for the membership year beginning August 1, 2019, as presented to Council in item 12, are hereby approved.